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In 1871, when Aransas County was separated from part of Refugio County, the government of Refugio County returned to Refugio.
The town's council was reorganized in 1874, and Refugio began to revive as it became a marketing and shipping center for the hides, wool, cotton, and livestock produced in the area.
By 1884 the town had grown to a population of about 1, 000 and included a wooden courthouse, three churches, and a public school.
Though the population of the surrounding county declined during the 1880s, Refugio continued to grow during this period, and by 1890 there were an estimated 1, 100 people living there.
That year the town had Catholic and Baptist churches, a convent, a parochial school, two public schools ( one for white students, one for blacks ), and two hotels.
Without a railroad Refugio had difficulty competing with other towns in the region, however, and shrank during the 1890s ; its estimated population dropped to 800 by 1892 and to 600 by 1896 ; in 1900 there were 699 people living there.
About 1902 the St. Louis, Brownsville and Mexico Railway began making surveys of the area, and fearing that the railroad would bypass their town unless paid a $ 30, 000 " bonus ," leading citizens organized to raise the money.
Ultimately, the town paid the railroad $ 18, 000 in cash and half of the town's common lands for a railroad connection, and by December 1905 the tracks had been laid and a depot built about a mile from the city.
A description of the town in 1905 mentioned the convent, a hotel, two saloons, a blacksmith shop, about five stores, the wooden county courthouse, and a " handful " of dwellings.

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